Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Over a Million UK Homeowners Face £283 Monthly Mortgage Increase

More than one million UK homeowners are set to face significant increases in their monthly mortgage repayments after coming off two-year fixed-rate deals, according to data from Compare the Market. The data shows that these homeowners could see their monthly payments rise by £283 if they move onto their lender’s standard variable rate (SVR).

The report states that 1,095,905 homeowners who took out mortgages in 2024 are now coming off two-year fixed rates with an average interest rate of 4.81%. This group includes 122,526 first-time buyers, 111,349 home movers or second-time buyers, 690,738 homeowners who previously remortgaged with their current provider, and 122,832 who remortgaged with a new provider.

For those moving onto their lender’s SVR, the average monthly repayment could increase to £1,432, based on an average mortgage debt of £200,250. This is a rise from £1,149 per month on their previous two-year fixed rate, resulting in an annual payment of £17,184 compared to £13,788 previously. This means affected homeowners could pay more than £3,000 extra each year.

The latest Moneyfacts figures show that the average SVR was 7.13% in July 2026, compared to an average two-year fixed rate of 4.81% in 2024 and 4.79% in July 2026. The data is based on an average mortgage debt of £200,250 per household over a 25-year term and does not account for individual circumstances or additional product fees.

This development is relevant for letting agents and inventory clerks, as changes in mortgage costs may impact landlords’ decisions and the wider UK property market.